Chinese autonomous driving startup WeRide has reportedly postponed its plans for an initial public offering (IPO) in the United States. According to Bloomberg, the company is still preparing for its first-time share sale, but the delay comes just days before the China Securities Regulatory Commission’s deadline for approving the deal. It remains unclear whether WeRide will need to reapply for approval or seek an extension.
WeRide aimed to raise up to $119.4 million through the IPO by offering 6.452 million American depositary shares (ADS) priced between $15.50 and $18.50 per share. The company also revealed in a filing with the Securities and Exchange Commission (SEC) that some existing investors had agreed to purchase $320.5 million worth of shares upon completion of the IPO.
This postponement coincides with growing US concerns over Chinese autonomous and internet-connected vehicles. The Biden administration is reportedly considering imposing restrictions on the sale of Chinese vehicle software this month, according to Bloomberg sources.
WeRide, founded in 2017, specializes in autonomous driving technologies. The company is currently testing and operating its products in 30 cities across seven countries in Asia, the Middle East, and Europe. In the first half of 2024, WeRide reported revenue of 150.3 million yuan ($20.97 million) and incurred a loss of 881.7 million yuan ($123.03 million), up from a loss of 723.1 million yuan ($100.9 million) in the same period last year.
The postponement of WeRide’s IPO highlights the complex geopolitical landscape surrounding autonomous vehicles and the increasing scrutiny faced by Chinese companies in the US market. It remains to be seen whether WeRide will ultimately proceed with its IPO or if the evolving regulatory environment will force it to reconsider its plans.
